Tom Palace, Executive Director of the Petroleum Marketers and Convenience Association of Kansas, speaks to a Kansas House committee Wednesday afternoon as a proponent of House Bill 2556 that would allow grocery and convenience stores to sell full-strength beer, wine and alcohol.

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Dueling business owners positioned expanding liquor sales as either a lifeline or a pair of cement shoes for their operations.

The Kansas House Commerce, Labor and Economic Development Committee held a hearing Wednesday on House Bill 2556, which would allow grocery stores and convenience stores to sell full-strength beer, wine and liquor. Under current law, grocery stores can only sell beverages containing 3.2 percent alcohol or less.

The bill includes a provision to hold the number of retail licenses for the sale of liquor in the state at their 2014 level until 2024, so that a new seller could only get a license by buying one from an existing license holder. It would allow new licenses for beer sales only to be issued starting in 2017 and new beer and wine sales licenses starting in 2020.

Mike Moon, who owns three independent grocery stores in Osawatomie, Humboldt and LaCygne, said allowing liquor sales would help small stores like his compete with big-box stores that are drawing away food buyers. Liquor sales have a higher profit margin than food sales, and small stores don’t have to invest as much to add alcohol as they would to branch into prepared foods, he said.

“Modernizing Kansas liquor laws will be very good for rural grocery stores,” he said. “Let’s face it, adult beverages are food items.”

Moon told reporters after the hearing this was the fourth time he had come to Topeka to testify about expanding liquor sales, but he is optimistic it may pass this year because the latest version of the bill involves phasing in the expansion gradually.

Jeff Breault, who owns R&J Discount Liquor in Wichita, said expanding sales to such large chains as Dillons and Wal-Mart could put as many as half of Kansas liquor stores out of business in short order. Specialty liquor stores may thrive in large markets, he said, but they would go under in rural areas.

“It would mean more empty storefronts and fewer jobs,” he said.

Dave Dillon, chairman of Kroger, which owns the Dillons stores, said selling liquor at Kroger in other states hasn’t put liquor stores out of business there. Dillon said Kansas customers have said they want to buy alcohol while picking up their groceries, and that limiting where it can be sold constrains the free market.

“The best businesses, the really good businesses, are able to take on competition, adapt and prosper,” he said. “Our opponents don’t want competition. And that’s not the American way.”

Tuck Duncan, general counsel for Kansas Wine & Spirits, disagreed, saying expanding sales would hurt customers by increasing distribution costs and undercutting stores that offer more variety and better service. He also said Kansans haven’t shown a strong demand for more places to buy alcohol.

“It’s cultural. Forty percent of Kansans don’t even drink,” he said.

Frances Wood, of the Temperance Union, argued on the same side as Duncan but disagreed with his premise. She said expanding access to alcohol would have negative effects on health and society.

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With current liquor laws Mr. Moon can open a liquor store. So can Dillon's, Hy-Vee, etc. They don't want to follow current regs to have a separate entrance and other laws that Kansas owned business follow now.

I guess repeating the same thing over and over again is a good way to debate American. Not sure why I need to cross a border though. If it helps, Free Market is defined as a transaction between two individuals with little to no government regulation. Alcohol will always have government regulation so not sure what about current liquor laws are anti Free Market.

I don't think you know how much regulations are forced on liquor stores as to - hours they can be open, prices they pay, prices they can sell for, days they can be open, what they can sell [have you ever seen a liquor store with a bottle of water for sale or a bag of chips?]. I don't call that 'little or no government regulation. Don't tell me about 'government regulation'.

Time for Kansas to grow up. This commie system of allowing some to sell and not others is embarrassing. To those little liquor store owners above, give us a reason to shop at your business and we will.Let the free market work.

Do we have laws like this for any other business? Especially where a person who wants to open that type of business cannot unless they buy out an already established business?

Expand the sales. Do not penalize larger businesses because they were successful. Each one of them started off small. Further, if we do not expand the sales, why don't we prevent larger businesses from selling books, magazines, clothing, furniture, etc.

Larger businesses are going to focus on only a small portion of the potential liquors they could sell. Liquor stores will still be needed for those that do not want those mainstay alcohols.

Liquor stores can have a party shop where they can sell item's other than liquor. Some stores don't have the space to do that. If all you want is a bottle of water why would you go to a liquor store? As far as grocery stores not being able to own a liquor license that is a lie. Corporations can not own an off premise license but a resident of Kansas can. The store manager of any grocery store can own a liquor license if they meet the requirements. This current law wouldn't open the market to everyone, it would regulate it in a way that would only benefit the larger corporations cutting out the free market principle that exists today. If the consumers of Kansas wanted 3000 plus locations to buy their alcohol the free market system would have obliged.

my Soviet hat today (although a ushanka is better for cold weather than rain) and gonna have to disagree strongly. I know you'd rather money spent on liquor go to some out of state corporations than mom & pop operations; but I'm sure you can understand that some of us disagree, right? Because there are reasons to support your neighbors rather than shareholders in Arkansas and Ohio. Yes, it goes against Ayn Rand's prescriptions, but it HAS worked here for years. Now if you're that worried about those cuddly corporations like Wal-Mart and Kroger, I have it on good authority that they will do just fine without it.

But since you seem so interested in free market economics, perhaps you'll explain to us why Wal-Mart and Kroger are always seeking tax favors when they expand somewhere. I mean, if you really want a free market ... .

1 to sell liquor and 1 to sell other stuff. There has to be a separate entrance as well.
This is totally asinine way to run a business. KS can't end it fast enough. Just think some day you will be able to buy your beer and your pretzels or your wine and cheese at the same cash register. What a novel idea! (and don't bring up 3.2 beer because that is garbage.)

1 to sell liquor and 1 to sell other stuff. There has to be a separate entrance as well.
This is totally asinine way to run a business. KS can't end it fast enough. Just think some day you will be able to buy your beer and your pretzels or your wine and cheese at the same cash register. What a novel idea! (and don't bring up 3.2 beer because that is garbage.)

If I go to a grocery store now why do I have to checkout in one lane, then go buy lottery tickets in another part of the store? That seems asinine to me. Why do I have to go to one certain lane to buy tobacco products? Why don't they have them in every isle? Why can't I buy great Kroger items at Hy-Vee or at a local gas station? I want answers! Bottom line, this bill passes in any way shape or form businesses close, people lose jobs, and empty storefronts continue to build. This bill doesn't pass and Free Market will still dictate just how many liquor stores are needed and Dillon's, Hy-Vee, and Wal-Mart continue to do business with tax breaks and minimum wage employee's.

I agree rosenowad it does seem asinine that you can't buy cigs and lotto tix at the checkout counter but that isn't a good reason to perpetuate more asinine policies. The rest of your diatribe is ridiculous. "Why can't I buy great Kroger items at Hy-Vee or at a local gas station?" Really? You are thick and have remedial issues if you need answers to that question.
The truth is that if this bill passes then the nature of the liquor business in KS WILL change for the better for CONSUMERS. Protecting a small group of business people by limiting consumer options is not the American Way! The free market currently is not dictating the number of liquor stores that can operate in KS. Local governments do that. Did you not know that? Some stores won't be able to handle the change in the competitive environment but then again some good business people will see that new opportunities this will create and take advantage of them and create jobs to meet the demand.

I assume you are not wheel chair bound, if you are disregard this comment KCStymie. Does it take that much time out of your day to go to 2 different places for certain goods? Do you think that everything should be sold in one place so you can hurry up and get home to comment on something on the internet? I only bring it up because near almost every grocery store is a liquor store. Those liquor stores that apparently are such a burden on you to go into to are ALL locally owned. Those owners more than likely use local banks, accountants, HVAC services etc. That money obviously then stays in YOUR local community.

I was trying to be humorous and obviously sarcastic on the Kroger brand comment. I was trying to follow your logic on having to go to 2 separate counters if a liquor store had a party shop.

I miss how liquor store owners are protected? Protected from what? Competition? Anyone who lives in Kansas can open a liquor store if they meet certain requirements. Local governments don't limit the number of liquor stores. If that were the case then why would there be a state law being considered to flood the market with new liquor stores? Also, passing this bill will not add one single new job. Grocery stores and gas stations won't hire new people to sell alcohol. If you think that then you sir are the thick one.

Does it take that much time out of my day to go to 2 counters. Yes it does. It is stupid. stupid. stupid. The only reason I have to do it in KS is a stupid law that limits a business owner to selling one product type at a counter. Which is why I buy most of my groceries and liquor in MO. Better selection, better prices, and more convenience.